PayPal Investigated Over Potential Market Dominance in Germany (reuters.com) 12
Germany's cartel office regulator said on Monday it had initiated proceedings against payment company PayPal Europe over the possibility that it hindered competition. Reuters reports: The subject of the proceedings was PayPal's rules for extra charges and the presentation of PayPal in the terms of use for Germany, the watchdog said. The regulator is investigating in particular rules that say merchants may not offer their goods and services at a lower price to customers who choose a cheaper payment method than PayPal.
PayPal demands that sellers do not express a preference for other payment methods or make their use more convenient for customers, according to the antitrust watchdog. "These clauses could restrict competition and constitute a violation of the prohibition of abuse," said cartel office chief Andreas Mundt in a statement. "We will now examine what market power PayPal has and to what extent online merchants are dependent on offering PayPal as a payment method."
PayPal demands that sellers do not express a preference for other payment methods or make their use more convenient for customers, according to the antitrust watchdog. "These clauses could restrict competition and constitute a violation of the prohibition of abuse," said cartel office chief Andreas Mundt in a statement. "We will now examine what market power PayPal has and to what extent online merchants are dependent on offering PayPal as a payment method."
Alternatives? (Score:2)
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PayPal. They are not putting PayPal as a whole on trial, but PayPal may not be allowed to dictate rules on the use and pricing of other payment methods.
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Klarna?
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I was a fan of Giropay until my bank stopped supporting it. Giropay has merged with Paydirekt a while ago.
Sofortüberweisung (part of Klarna now) is a security nightmare since you have to give your bank login data to that company.
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Can't you just pay with a bank transfer, without any extra middlemen?
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Yes. But not in third world banking countries like the US
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Swipe maybe? Don't know enough to know how big they are in E and Germany in particular.
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Banks. PayPal has never been necessary in Europe due to interconnected banks
over ABUSE of market dominance (Score:2)
Market dominance is not illegal, but abusing it to tilt the market in your favor is.
Translation (Score:3)
"The regulator is investigating in particular rules that say merchants may not offer their goods and services at a lower price to customers who choose a cheaper payment method than PayPal. "
It means that the merchant agrees to not ask for extra fees when paying with Paypal.